Understanding the mindsets of US investors

The US Private Placement market offers a rich source of long-term funds for a wide range of Australian corporates. Our latest survey reveals the key factors that influence US investor buying decisions and their expectations for 2015.

While the US Private Placement market offers a rich source of long-term funds for a wide range of corporates, it’s also complex, deep and diverse market.

To help Australian businesses understand the mindsets of US investors so they can better navigate the market, we asked 25 US investors about the key factors expected to influence buying decisions in 2015 – including the types of borrowers that investors prefer, their risk appetite and their capacity.

Over 90% of investors expect to have a similar or increased risk appetite in 2015 compared to 2014.

42% of investors are willing to fund in the non-US issuer’s home currency.

43% of investors responded that their allocation on bids submitted was between 41-50%, with another 17% of investors responding that their allocation was between 26-40%.

Over 50% of investors surveyed responded that they could fund transactions that matured past 15 years if the issuer required it.

In conjunction with this report, NAB’s General Manager of Capital Finance in North America, Geoffrey Schmidt analysed the six fundamental attributes every company must possess to be successful in the US capital markets.

About the Author

Business View Connect is NAB’s online source of economic updates, business trends and case studies specifically for small to medium enterprises. We draw on insights from NAB’s economists and a range of Australian business experts so you’re armed with the tips you need to help your business succeed. Regular topics include cash flow, business planning and wealth management.